The cash and stock deal between the Irving-based oil and gas driller and ProPetro will sell Pioneer's pressure pumping assets for $110 million in cash and 16.6 million shares of ProPetro stock valued at $290 million. ProPetro, which deals in hydraulic fracturing or fracking services for unconventional oil and gas production, will provide Pioneer with pressure pumping services for 10 years.

The move is the latest by Pioneer to simplify its business. The company has been working to finish selling its South Texas Eagle Ford Shale assets in order to focus on the West Texas Permian Basin oil field.

When the transaction is complete Pioneer will have a 17 percent stake in ownership of ProPetro. In morning trading ProPetro's stock rose 2.6 percent to $17.92 a share, while Pioneer's stock fell less than a percent to $154.02.

After the transaction ProPetro says it will have 28 frac fleets in the Permian with more than 1.4 million horsepower. The deal values Pioneer's pressure pumping assets at $333 million and real estate and other assets at $67 million.